Economic System and Market Structures AFCAT Questions

AFCAT Indian Economy

Economic System and Market Structures MCQ Questions


1.
The primary objective of a socialist economic system is to ______________.
A.
Equity and fairness
B.
Economic growth
C.
Income maximization
D.
Government control
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ANSWER :
A. Equity and fairness
2.
In a mixed economy, the government ______________.
A.
Regulates only the market
B.
Owns certain industries
C.
Is the only producer
D.
Has no role
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ANSWER :
B. Owns certain industries
3.
The capitalist system is based on the principle of ______________.
A.
State ownership
B.
Private property
C.
Collective ownership
D.
State intervention
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ANSWER :
B. Private property
4.
A major characteristic of a free market economy is that ______________.
A.
Government intervention
B.
Private ownership
C.
Central planning
D.
No competition
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ANSWER :
B. Private ownership
5.
A market economy is driven by the ______________.
A.
Profit motive
B.
Command control
C.
State intervention
D.
Social welfare
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ANSWER :
A. Profit motive
6.
In a market economy, the prices of goods and services are determined by ______________.
A.
Supply and demand
B.
Central planning
C.
Government directives
D.
Labor force
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ANSWER :
A. Supply and demand